Clint, Lee and Eli Are the Only Three Residents of the Village

question 68

Multiple Choice

Clint, Lee and Eli are the only three residents of the village of Fantasma. They are considering whether to construct a hiking trail in the mountains surrounding the village. Because congestion on the trail is unlikely, it would be nonrival. Clint values the trail at $300 per month, Lee values the trail at $100 per month, and Eli values the trail at $80 per month. The cost of building and maintaining the trail is $420 per month. If Clint proposes a tax whereby all three of them split the cost of the trail equally, then will the majority of them support this tax?

• A)No, because building the trail is not socially optimal.
• B)No, even though building the trail is socially optimal.
• C)Yes, even though building the trail is not socially optimal.
• D)Yes, because building the trail is socially optimal.

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Definitions:

Lithium Aluminum Hydride

A powerful reducing agent used in organic synthesis to reduce esters, carboxylic acids, and amides to alcohols.

Major Organic

The primary organic compound formed as the principal output in a chemical reaction.

Organic Product

A compound that typically contains carbon atoms and is produced as a result of the chemical reactions within a living organism or synthetic organic reactions.

Major Organic

Typically refers to the main or most important organic compound or structure in a particular context or reaction.